"Customer Deposits Alone Total 9.3 Billion Won..." Investors 'Stomp Their Feet' as Coinbit Access Blocked

In April, the coin prices were displayed on the price electronic board at Bithumb Gangnam Center in Gangnam-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Hwang Sumi] It has been revealed that nearly 10 billion KRW of customer deposits are trapped in the cryptocurrency exchange Coinbit, which recently blocked access. Investors using this exchange are concerned about potential issues with withdrawing their deposits.

According to data confirmed by the office of Kang Min-guk, a member of the National Assembly’s Political Affairs Committee from the People Power Party, as of the end of last month, Coinbit had 97,499 members and deposits totaling approximately 9.39 billion KRW.

Specifically, the deposits include 1.79 billion KRW in Korean won and 7.6 billion KRW in cryptocurrency deposits (excluding those scheduled to end trading support).

Earlier, Coinbit blocked access to its homepage on the 17th, citing server maintenance. In a notice on the same day, Coinbit stated, "We are preparing to issue real-name bank accounts, but negotiations with banks are delayed," and "According to relevant laws, the KRW market will be terminated, and 34 virtual assets in that market will be transferred to the Bitcoin (BTC) market."

Additionally, they apologized, saying, "Due to delays in server maintenance related to market transfer work, we sincerely apologize for the inconvenience caused in using the service," and added, "Members’ assets are being safely stored, and we will provide guidance through notices once the maintenance is complete."

In connection with this, various online communities have been filled with posts from investors expressing anxiety, saying "We might lose our investments." They worry that if withdrawals are blocked contrary to Coinbit’s notice, they might lose all the money they have deposited.

Some investors are reportedly creating online group chats to discuss response measures.

In response, Coinbit announced that server maintenance will be completed soon and normal access will be restored.

A Coinbit official said, "We understand that server maintenance began on the 16th of this month," adding, "Once the maintenance is complete and the homepage reopens, withdrawals can be made without any issues. We will finish the maintenance as quickly as possible."